10/2024
When shopping for a capsule house, understanding international pricing models can be challenging. Many companies rely on Incoterms (International Commercial Terms) to outline the responsibilities of buyers and sellers in global transactions. These standardized terms define who handles the logistics, covers costs, and takes on risks throughout the shipping process.
The right pricing model can make a significant difference in the overall experience, affecting not just costs but also the ease and predictability of delivery. Choosing a supplier with a transparent and comprehensive pricing structure ensures you avoid unexpected expenses and logistical headaches.
At HIDULAR, we prioritize simplicity and peace of mind by offering pricing that covers everything needed to get your capsule house to your nearest port safely and efficiently. In this blog, we’ll break down the differences between common pricing models, explain how our approach benefits you, and show why our process makes buying a capsule house straightforward and worry-free.
What is EXW (Ex Works) Pricing?
EXW pricing means the product cost only covers the price at the factory or seller’s location. Once the product is ready, it’s up to the buyer to handle and pay for all transportation from the factory to the origin port and beyond. This means the buyer is fully responsible for every logistical step, including:
- Arranging transportation from the factory to the origin port
- Booking and paying for international freight to the destination country
- Handling customs paperwork and clearance
- Paying import duties and taxes
- Securing insurance for transit
- Covering risks and managing delays from the moment the product leaves the factory
EXW pricing often looks cheaper at first glance, but the logistical burden and hidden costs quickly add up, making it less attractive for buyers unfamiliar with international shipping processes.
Common Pitfalls of EXW Pricing
- Unexpected Freight Costs: Freight rates can fluctuate, and buyers unfamiliar with international logistics often end up overpaying.
- Delays Due to Incorrect Paperwork: Customs paperwork mistakes can lead to shipment delays or fines.
- Risk of Product Damage or Loss: Without insurance, buyers bear the full risk of damaged goods in transit.
- Customs Confusion: Import taxes and duties can vary, and miscalculations can cause delays or extra costs.
What is DAP (Delivered At Place) – Destination Port Pricing?
DAP pricing is designed to make your purchase straightforward and stress-free. Our price covers everything until the capsule house reaches your destination port, including:
- Freight shipping to your nearest port
- Insurance for your product during transit
- Customs fees and import taxes
- All risks covered throughout transit, up to the destination port
We want you to focus on what matters most—preparing your site for installation—without worrying about shipping logistics. With our DAP model, we manage the entire process, ensuring there are no hidden fees or surprises.
Why DAP Pricing is Better for You
- No Hidden Fees or Surprises
With DAP pricing, you know the total cost upfront. We cover freight, insurance, taxes, and customs fees, meaning you won’t have to scramble for extra payments or deal with delays at customs. - Peace of Mind
We assume the risks involved in transit, so you don’t have to worry about damaged or lost goods. From our factory to your nearest port, we’ve got it covered. - Time and Hassle Savings
Freight shipping, customs paperwork, and tax calculations can be complicated. With DAP pricing, you skip the headache — we take care of everything for you. - A Trustworthy Partner
When purchasing something as significant as a capsule house, transparency and trust are crucial. Our pricing reflects our commitment to providing a seamless and worry-free experience.
At HIDULAR, our mission is to make it as easy as possible for customers to purchase a high-quality capsule house without unnecessary stress. We know the frustration that comes with unreliable suppliers and confusing pricing schemes. By offering DAP pricing, we take full responsibility for your order until it reaches the nearest port, removing uncertainty from the equation.
Conclusion
Purchasing a capsule house may seem cheaper with EXW pricing at first, but the added stress and unexpected costs of managing freight, insurance, and customs can quickly add up. At HIDULAR, our DAP pricing gives you a transparent, all-in-one price so you can be confident your product will arrive safely, without hidden fees or surprises.
Have questions or ready to get started? Call us at 808-226-4671 or send us a message today to learn more about our capsule houses and how we can help.
TL;DR
Too Long; Didn't Read
Many companies use EXW pricing, which only covers the product at the factory, leaving buyers to handle transportation, shipping, customs, taxes, and insurance, along with all risks. HIDULAR offers DAP pricing, covering everything—shipping, insurance, customs, and taxes—until the product reaches the buyer’s nearest port. While EXW may appear cheaper upfront, it often brings hidden costs and complications. DAP ensures a clear, complete price with no surprises or logistical burdens for the buyer.
%402x%20(1).svg){kind=icon}
.png)
